Multinational Enterprise, Innovation, and Development: Theoretical Perspectives
Multinational Enterprise, Innovation, and Development: Theoretical Perspectives
This chapter provides the theoretic background and working hypotheses for the empirical tests that follow in subsequent chapters. The book is informed by substantial literature in several academic subfields, including but not limited to international political economy, international business studies, development economics, and global value chain research. This chapter builds a cumulative theoretic framework for interpreting multinational innovation and comparative institutionalist perspectives. Prior literature and debate inform the hypotheses presented in this chapter, which involve both country and firm level attributes and resulting investment patterns. The chapter considers ideas from international development studies regarding the role of multinational firms in processes of country growth and technological upgrading, theories of the firm and contemporary pressures for polycentric innovation models, and institutionalist perspectives from political science and political economy. This chapter also provides working definitions for key concepts and how institutions might be analytically separated from host country policies. The chapter emphasizes the theoretic support for the causal mechanisms supposed in the various hypotheses.
Keywords: Firm Bargaining, Global Value Chains, Foreign Direct Investment, Development, Economic Sectors, Innovation, Investment Promotion, Comparative Institutionalism, Firm Strategy
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